2018 Budget – A Summary
Philip Hammond presented his 3rd budget as Chancellor on Monday 29th October amidst a backdrop of the supposed end of austerity. It highlighted a number of interesting points from a business/employment market perspective, not least that wage growth is at its highest in nearly 10 years.
The key points were as follows:
- The personal allowance threshold for 20% tax will rise from £11,850 to £12,500 in April 2019 – this is a year earlier than planned.
- The higher rate income tax threshold for paying tax at 40% will to rise from £46,350 to £50,000 in April 2019.
- National Living Wage will increase from £7.83 to £8.21 an hour from April 2019.
- The contribution of small companies to the apprenticeship levy will be reduced from 10% to 5%.
- Business rates bill for firms with a rateable value of £51,000 or less will be cut by a third over two years.
- From April 2020, profitable technology companies with global sales of more than £500m will be liable for a 2% digital services tax on UK revenues.
- Work allowances for universal credit will be increased by £1.7bn.
- Delayed IR35 taxation changes could result in thousands of private-sector contractors facing higher tax and National Insurance bills from April 2020.
The REC (Recruitment and Employment Confederation) of which Intro Personnel is a proud member, has responded positively to the above – https://www.rec.uk.com/news-and-policy/press-releases/rec-full-response-to-the-chancellors-budget
A full summary of the budget can be found at – https://www.bbc.co.uk/news/uk-politics-46017125